German (premium) customer acceptance of Chinese OEMs<\/h1>\n\n Munich, November 2022<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\n \n\n\n \n \n\n I<\/span>\n n the last series of articles, the Berylls China team analyzed the Chinese OEMs\u2019 bumpy market entry story into Europe.The focus of these analyses was a broader scope of understanding for successfully entering the European market and what currently hinders the Chinese OEMs.<\/p>\n\n <\/div>\n\n \n\n <\/div>\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\tFrom our perspective, all aspects of a successful Go-To-Market strategy require a customer-centric approach. And which customer is more challenging than the loyal German customer?<\/p>
We conducted a detailed survey to understand the perception and expectations of German customers towards Chinese OEMs.<\/p>
For this endeavor, Berylls and Civey have teamed up to provide a precise understanding of the German automotive-buying persona.<\/p>
\u00a0<\/p>
For the analyses, we have conducted two studies, each with one thousand participants and a side study with 60 Chinese OEMs\u2019 experienced customers.<\/p>
First study: asking the general German customer
Second study: on customers who own a premium car<\/p>
Both groups are willing to purchase a foreign brand\/model. While the first study is still ongoing, the latter had a field time of June 10 and September 15, 2022.<\/p>
Further, we understand that the premium market consists of brands such as BMW, Audi, Mercedes Benz, and JLR. Although Mercedes Benz announced that it would focus on becoming a luxury brand, we do not think this has had a strong effect on the customer mindset in the brief time span since the announcement.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\tInsight download and author information\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\n \n \n \n\n\t Authors<\/h2> <\/div>\n \n \n \n Soleiman Mansouri<\/p>\n
Associate Partner<\/p>\n
soleiman.mansouri@berylls.com<\/p>\n <\/div>\n
\n \n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n\n <\/div>\n \n \n Parwiz Torgull<\/p>\n
Head of Customer Success Civey<\/p>\n
<\/p>\n <\/div>\n
\n \n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n\n <\/div>\n \n \n\n <\/div>\n\n <\/div>\n\n\n\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFirst, the results are astoundingly surprising! Heads-up, <\/strong>owners of premium cars (MB, BMW, Audi, JLR, Porsche) are more positive than general customers. <\/strong><\/p>\u00a0<\/p>
1. One Group German\/EU OEMs:<\/h2>1.1 Chinese are arriving, and the German customers are willing to give them a chance<\/h2>
Among the premium customers, roughly 25% consider Chinese brands when purchasing a car<\/a>. This is a significant threat to German\/EU OEMs, given the fact that most Chinese brands have not yet started their marketing\/communication activities. Surprisingly, the general German customer shows notably less willingness (16%) even though \u201cvalue-for-money\u201d is the key driver for respective purchase decisions (46% general vs. 57% premium). Overall, the EV market will be severely more clustered with the Chinese entrants. Here the existing market player will have to fight to sustain market shares, while the Chinese need to be aware that conversion to a purchase will require investment into the right channels.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1.2.<\/strong> The German customer mindset is surprisingly heterogeneous and difficult to grasp – new generations are open to innovative solutions<\/strong><\/h2>As the market becomes fragmented, customer perception and openness to the latest brands are also changing. Almost 50% of the premium customers believe that Chinese OEMs will be successful in Europe<\/a>, while the general customer is more conservative at only 35%.This high percentage illustrates a leap of faith by German customers toward Chinese OEMs that there is a certain level of trust or an expectation of technical leadership in developing EVs. In particular, the Western OEMs need to underline the strength of their upcoming EV portfolio and provide the WOW-effect of their product substance (clear product USPs). Their Asian competitors, on the other hand, will still have to prove that quality and service will not be causes to reject a purchase of Chinese models.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1.3<\/strong>. High rate of acceptance among the 30-39-year-old premium customers<\/strong><\/h2>The struggle to get the attention of first-time car buyers is real. Premium German OEMs particularly know how crucial it is to convince the age group 30-39 or Gen Y to become their first-time customers. German OEMs will face a dramatic challenge as 42% (vs. 16% of general German customers) of this group are willing to acquire a Chinese product<\/a>. This group is very clear on the reasons to conduct such a purchase (only 10% stated \u201cI don\u2019t know\u201d), while 60% of the general customers at this age state the technical specifications of the Chinese brands. The European first-time buyer in most countries will be a decisive group to convince towards the new entrants or to keep with the existing brands. As such, in particular, marketers should consider focusing significantly more on addressing this respective group with a surgical approach.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2. Chinese OEMs: <\/strong><\/h2>2.1 Brand building and brand experience are the most important aspects of a roll-out<\/strong><\/h2>A willingness to purchase a Chinese car, not knowing the brands and what they stand for, is obviously an obstacle for premium Chinese brands. Though brands such as Polestar, NIO, and BYD have the highest brand recognition among the Chinese OEMs entering the EU market, it is still a limiting factor not to have experienced the brands on hand. The recognition counts for both premium customers and the average customer. In fact, once customers have any touchpoint with Chinese brands, the purchase consideration jumps from 21% to up to 85%<\/a>.<\/span>\u00a0Overall, this emphasizes the importance of brand and product awareness and the groundwork to be done by the Chinese. It also emphasizes the immense significance of deals such as the recent one between BYD and SIXT, providing a vast number of customers with the possibility of experiencing Chinese products firsthand.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2.2 Knowing Your Customer – who is your target group? <\/strong><\/h2>A critical challenge for Chinese OEMs will be gathering valid data to define their target group and clearly understanding the German\/European customer in detail. Valid market data can and will help Chinese OEMs to understand their value proposition from the point of view of potential German customers and reframe their messaging. Our data indicate a strong difference among age groups<\/a> (lowest: 18-29 with 11% and 65+ with 16%) and propose the marketing of the cars among potential premium customers around the attributes of affordability and EV technical features (range and charging times).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2.3 Politics are not as strongly influencing premium customers as expected<\/strong><\/h2>The omnipresent discussion of the notion that politics are an influential factor in the purchase decision of the German\/European customer seems to be a valid point. Whether it is political topics or purely the mistrust in Chinese technology, such as the Huawei\/ZTE case, the media perspective is always a polarized picture of opposing Chinese products. However, our study indicates that German customers are less influenced by these political arguments than expected. In fact, 50% of the customers (general and premium) state that it merely has an effect on their purchase decision. Thus, when confronted by political provocation, OEMs are recommended to emphasize the separation between the mere attempt to offer customer-oriented mobility solutions to political turmoil while keeping their ground on the fundamental values of the brand proposition.<\/p>
\u00a0<\/p>
So, after this short excursion, what are the detailed results?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\tAwareness <\/strong><\/h2>While most German customers cannot name any Chinese brands (more than 70% – see figure 1), this figure reduces strongly with premium customers (57% – see figure 2) and the ones experienced with CN OEMs to only 2% – see figure 3 (can name several brands). Polestar, Nio, and BYD are the best-known brands named by at least every fifth customer asked. Brands such as WEY (GWM) or Xpeng are barely known. From our point of view, this obviously has a lot to do with the heritage (Volvo-Polestar), strong marketing efforts, the presence of cars on the road, and also the stock market attention where many customers are hoping to invest in the next Tesla (Nio\/BYD).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1. Brand Awareness among general German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie1.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2. Brand Awareness among premium German customers<\/strong><\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie2.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t3. Brand Awareness among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie3.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tConsideration <\/strong><\/h2>What is much more outstanding is the general openness toward purchasing a Chinese model. Only 17% of the general German customers showed strong or somewhat openness towards purchase willingness, while this figure increases to every 5th (22%) premium customer asked. Once a customer gains experience with Chinese OEMs, it appears that the Chinese are unstoppable within the purchase decision basket of the German customer (74% of the customers asked). This indicates that the key purchase barrier might still be the strong lack of brand\/product awareness and brand\/product experience. While the Chinese are champions at playing the game of customer-centricity on their home ground, this provides the impression of a fantastic opportunity for opening up to German customers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t4. Brand consideration among general German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie4-1.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t5. Brand consideration among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie5-1.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t6. Brand consideration among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie6-1.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tThough asking premium customers about specific brands, the willingness decreases roughly 2\/3, with Polestar being in the forefront (12%), followed by Nio (6%) and BYD (7%). This changes decisively with customers experienced with Chinese products, Polestar (83%), Nio (34%), and BYD (71%). From our point of view, this shows that legacy and history do make a difference when it comes to customer trust. Polestar is perceived as a Volvo company (and, as such, with European DNA), BYD has been around for more than 20 years in European discussions, while Nio is the new kid on the block and still to convince customers. Besides legacy and history, Polestar specifically has been marketing the brand heavily since 2018. The Swedish\/Chinese brand has gained brand momentum throughout all media outlets with its high-street stores and social media presence. It seems that once German customers have taken comfort in a Chinese OEMs driver\u2019s seat, they are willing to stay.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t7. Openness towards Chinese OEMs among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie7.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t8. Openness towards Chinese OEMs among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie8.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tPurchase (reasons)<\/strong><\/h2>On the other hand, not-so-surprising key reasons for purchasing a Chinese car are mainly \u201cvalue-for-money\u201d (45% premium \/ 54% general) and key electric vehicle features such as range (19% premium \/ 41% general) and charging time (11% premium \/ 47% general). The most emotional purchase reason, \u201cdesign,\u201d is only stated by every 12th premium customer, while over a third of premium customers who have had experience with Chinese OEMs say that this would be a trigger. As such, more investment in sleek and distinctive European design is necessary for all new market entrants. In paradigm examples such as the Hyundai Ioniq 5, we can observe that such an adaption has a strong impact on direct acceptance by customers and sets the pace for a successful story of a model.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t9. Purchase (reasons) for Chinese OEMs among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie9.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t10. Purchase (reasons)for Chinese OEMs among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie10.jpg\")
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tAsking the customer which Chinese attributes might be superior to German brands is not so astounding – the majority believe, analog to purchase reasons, in \u201cvalue-for-money\u201d (42% premium \/ 53% general) and \u201cbase equipment level\u201d (19% premium \/ 48% general). What is shockingly low, though, is eRange, charging time, and design – all main decision factors for the latest brands. Here, Chinese OEMs need to prove their designs being able to convince buyers of any premium price. As such, the current price strategies of the Chinese OEMs (e.g., BYD, WEY, NIO) are on shaky ground if customers cannot observe clear competitiveness for these attributes.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t11. Superior attributes of Chinese OEMs compared to German ones from the perspective of premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t![\"\"](\"https:\/\/www.berylls.com\/wp-content\/uploads\/2022\/11\/Folie11.jpg\")
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n the last series of articles, the Berylls China team analyzed the Chinese OEMs\u2019 bumpy market entry story into Europe.The focus of these analyses was a broader scope of understanding for successfully entering the European market and what currently hinders the Chinese OEMs.<\/p>\n\n <\/div>\n\n \n\n <\/div>\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
From our perspective, all aspects of a successful Go-To-Market strategy require a customer-centric approach. And which customer is more challenging than the loyal German customer?<\/p>
We conducted a detailed survey to understand the perception and expectations of German customers towards Chinese OEMs.<\/p>
For this endeavor, Berylls and Civey have teamed up to provide a precise understanding of the German automotive-buying persona.<\/p>
\u00a0<\/p>
For the analyses, we have conducted two studies, each with one thousand participants and a side study with 60 Chinese OEMs\u2019 experienced customers.<\/p>
First study: asking the general German customer
Second study: on customers who own a premium car<\/p>
Both groups are willing to purchase a foreign brand\/model. While the first study is still ongoing, the latter had a field time of June 10 and September 15, 2022.<\/p>
Further, we understand that the premium market consists of brands such as BMW, Audi, Mercedes Benz, and JLR. Although Mercedes Benz announced that it would focus on becoming a luxury brand, we do not think this has had a strong effect on the customer mindset in the brief time span since the announcement.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
Insight download and author information\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\n \n \n \n\n\t Authors<\/h2> <\/div>\n \n \n \n Soleiman Mansouri<\/p>\n
Associate Partner<\/p>\n
soleiman.mansouri@berylls.com<\/p>\n <\/div>\n
\n \n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n\n <\/div>\n \n \n Parwiz Torgull<\/p>\n
Head of Customer Success Civey<\/p>\n
<\/p>\n <\/div>\n
\n \n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n\n <\/div>\n \n \n\n <\/div>\n\n <\/div>\n\n\n\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFirst, the results are astoundingly surprising! Heads-up, <\/strong>owners of premium cars (MB, BMW, Audi, JLR, Porsche) are more positive than general customers. <\/strong><\/p>\u00a0<\/p>
1. One Group German\/EU OEMs:<\/h2>1.1 Chinese are arriving, and the German customers are willing to give them a chance<\/h2>
Among the premium customers, roughly 25% consider Chinese brands when purchasing a car<\/a>. This is a significant threat to German\/EU OEMs, given the fact that most Chinese brands have not yet started their marketing\/communication activities. Surprisingly, the general German customer shows notably less willingness (16%) even though \u201cvalue-for-money\u201d is the key driver for respective purchase decisions (46% general vs. 57% premium). Overall, the EV market will be severely more clustered with the Chinese entrants. Here the existing market player will have to fight to sustain market shares, while the Chinese need to be aware that conversion to a purchase will require investment into the right channels.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1.2.<\/strong> The German customer mindset is surprisingly heterogeneous and difficult to grasp – new generations are open to innovative solutions<\/strong><\/h2>As the market becomes fragmented, customer perception and openness to the latest brands are also changing. Almost 50% of the premium customers believe that Chinese OEMs will be successful in Europe<\/a>, while the general customer is more conservative at only 35%.This high percentage illustrates a leap of faith by German customers toward Chinese OEMs that there is a certain level of trust or an expectation of technical leadership in developing EVs. In particular, the Western OEMs need to underline the strength of their upcoming EV portfolio and provide the WOW-effect of their product substance (clear product USPs). Their Asian competitors, on the other hand, will still have to prove that quality and service will not be causes to reject a purchase of Chinese models.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1.3<\/strong>. High rate of acceptance among the 30-39-year-old premium customers<\/strong><\/h2>The struggle to get the attention of first-time car buyers is real. Premium German OEMs particularly know how crucial it is to convince the age group 30-39 or Gen Y to become their first-time customers. German OEMs will face a dramatic challenge as 42% (vs. 16% of general German customers) of this group are willing to acquire a Chinese product<\/a>. This group is very clear on the reasons to conduct such a purchase (only 10% stated \u201cI don\u2019t know\u201d), while 60% of the general customers at this age state the technical specifications of the Chinese brands. The European first-time buyer in most countries will be a decisive group to convince towards the new entrants or to keep with the existing brands. As such, in particular, marketers should consider focusing significantly more on addressing this respective group with a surgical approach.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2. Chinese OEMs: <\/strong><\/h2>2.1 Brand building and brand experience are the most important aspects of a roll-out<\/strong><\/h2>A willingness to purchase a Chinese car, not knowing the brands and what they stand for, is obviously an obstacle for premium Chinese brands. Though brands such as Polestar, NIO, and BYD have the highest brand recognition among the Chinese OEMs entering the EU market, it is still a limiting factor not to have experienced the brands on hand. The recognition counts for both premium customers and the average customer. In fact, once customers have any touchpoint with Chinese brands, the purchase consideration jumps from 21% to up to 85%<\/a>.<\/span>\u00a0Overall, this emphasizes the importance of brand and product awareness and the groundwork to be done by the Chinese. It also emphasizes the immense significance of deals such as the recent one between BYD and SIXT, providing a vast number of customers with the possibility of experiencing Chinese products firsthand.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2.2 Knowing Your Customer – who is your target group? <\/strong><\/h2>A critical challenge for Chinese OEMs will be gathering valid data to define their target group and clearly understanding the German\/European customer in detail. Valid market data can and will help Chinese OEMs to understand their value proposition from the point of view of potential German customers and reframe their messaging. Our data indicate a strong difference among age groups<\/a> (lowest: 18-29 with 11% and 65+ with 16%) and propose the marketing of the cars among potential premium customers around the attributes of affordability and EV technical features (range and charging times).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2.3 Politics are not as strongly influencing premium customers as expected<\/strong><\/h2>The omnipresent discussion of the notion that politics are an influential factor in the purchase decision of the German\/European customer seems to be a valid point. Whether it is political topics or purely the mistrust in Chinese technology, such as the Huawei\/ZTE case, the media perspective is always a polarized picture of opposing Chinese products. However, our study indicates that German customers are less influenced by these political arguments than expected. In fact, 50% of the customers (general and premium) state that it merely has an effect on their purchase decision. Thus, when confronted by political provocation, OEMs are recommended to emphasize the separation between the mere attempt to offer customer-oriented mobility solutions to political turmoil while keeping their ground on the fundamental values of the brand proposition.<\/p>
\u00a0<\/p>
So, after this short excursion, what are the detailed results?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\tAwareness <\/strong><\/h2>While most German customers cannot name any Chinese brands (more than 70% – see figure 1), this figure reduces strongly with premium customers (57% – see figure 2) and the ones experienced with CN OEMs to only 2% – see figure 3 (can name several brands). Polestar, Nio, and BYD are the best-known brands named by at least every fifth customer asked. Brands such as WEY (GWM) or Xpeng are barely known. From our point of view, this obviously has a lot to do with the heritage (Volvo-Polestar), strong marketing efforts, the presence of cars on the road, and also the stock market attention where many customers are hoping to invest in the next Tesla (Nio\/BYD).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1. Brand Awareness among general German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2. Brand Awareness among premium German customers<\/strong><\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t3. Brand Awareness among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tConsideration <\/strong><\/h2>What is much more outstanding is the general openness toward purchasing a Chinese model. Only 17% of the general German customers showed strong or somewhat openness towards purchase willingness, while this figure increases to every 5th (22%) premium customer asked. Once a customer gains experience with Chinese OEMs, it appears that the Chinese are unstoppable within the purchase decision basket of the German customer (74% of the customers asked). This indicates that the key purchase barrier might still be the strong lack of brand\/product awareness and brand\/product experience. While the Chinese are champions at playing the game of customer-centricity on their home ground, this provides the impression of a fantastic opportunity for opening up to German customers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t4. Brand consideration among general German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t5. Brand consideration among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t6. Brand consideration among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tThough asking premium customers about specific brands, the willingness decreases roughly 2\/3, with Polestar being in the forefront (12%), followed by Nio (6%) and BYD (7%). This changes decisively with customers experienced with Chinese products, Polestar (83%), Nio (34%), and BYD (71%). From our point of view, this shows that legacy and history do make a difference when it comes to customer trust. Polestar is perceived as a Volvo company (and, as such, with European DNA), BYD has been around for more than 20 years in European discussions, while Nio is the new kid on the block and still to convince customers. Besides legacy and history, Polestar specifically has been marketing the brand heavily since 2018. The Swedish\/Chinese brand has gained brand momentum throughout all media outlets with its high-street stores and social media presence. It seems that once German customers have taken comfort in a Chinese OEMs driver\u2019s seat, they are willing to stay.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t7. Openness towards Chinese OEMs among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t8. Openness towards Chinese OEMs among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tPurchase (reasons)<\/strong><\/h2>On the other hand, not-so-surprising key reasons for purchasing a Chinese car are mainly \u201cvalue-for-money\u201d (45% premium \/ 54% general) and key electric vehicle features such as range (19% premium \/ 41% general) and charging time (11% premium \/ 47% general). The most emotional purchase reason, \u201cdesign,\u201d is only stated by every 12th premium customer, while over a third of premium customers who have had experience with Chinese OEMs say that this would be a trigger. As such, more investment in sleek and distinctive European design is necessary for all new market entrants. In paradigm examples such as the Hyundai Ioniq 5, we can observe that such an adaption has a strong impact on direct acceptance by customers and sets the pace for a successful story of a model.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t9. Purchase (reasons) for Chinese OEMs among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t10. Purchase (reasons)for Chinese OEMs among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tAsking the customer which Chinese attributes might be superior to German brands is not so astounding – the majority believe, analog to purchase reasons, in \u201cvalue-for-money\u201d (42% premium \/ 53% general) and \u201cbase equipment level\u201d (19% premium \/ 48% general). What is shockingly low, though, is eRange, charging time, and design – all main decision factors for the latest brands. Here, Chinese OEMs need to prove their designs being able to convince buyers of any premium price. As such, the current price strategies of the Chinese OEMs (e.g., BYD, WEY, NIO) are on shaky ground if customers cannot observe clear competitiveness for these attributes.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t11. Superior attributes of Chinese OEMs compared to German ones from the perspective of premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
Authors<\/h2> <\/div>\n \n \n \n Soleiman Mansouri<\/p>\n
Associate Partner<\/p>\n
soleiman.mansouri@berylls.com<\/p>\n <\/div>\n
\n \n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n\n <\/div>\n \n \n Parwiz Torgull<\/p>\n
Head of Customer Success Civey<\/p>\n
<\/p>\n <\/div>\n
\n \n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n\n <\/div>\n \n \n\n <\/div>\n\n <\/div>\n\n\n\n \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tFirst, the results are astoundingly surprising! Heads-up, <\/strong>owners of premium cars (MB, BMW, Audi, JLR, Porsche) are more positive than general customers. <\/strong><\/p>\u00a0<\/p>
1. One Group German\/EU OEMs:<\/h2>1.1 Chinese are arriving, and the German customers are willing to give them a chance<\/h2>
Among the premium customers, roughly 25% consider Chinese brands when purchasing a car<\/a>. This is a significant threat to German\/EU OEMs, given the fact that most Chinese brands have not yet started their marketing\/communication activities. Surprisingly, the general German customer shows notably less willingness (16%) even though \u201cvalue-for-money\u201d is the key driver for respective purchase decisions (46% general vs. 57% premium). Overall, the EV market will be severely more clustered with the Chinese entrants. Here the existing market player will have to fight to sustain market shares, while the Chinese need to be aware that conversion to a purchase will require investment into the right channels.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1.2.<\/strong> The German customer mindset is surprisingly heterogeneous and difficult to grasp – new generations are open to innovative solutions<\/strong><\/h2>As the market becomes fragmented, customer perception and openness to the latest brands are also changing. Almost 50% of the premium customers believe that Chinese OEMs will be successful in Europe<\/a>, while the general customer is more conservative at only 35%.This high percentage illustrates a leap of faith by German customers toward Chinese OEMs that there is a certain level of trust or an expectation of technical leadership in developing EVs. In particular, the Western OEMs need to underline the strength of their upcoming EV portfolio and provide the WOW-effect of their product substance (clear product USPs). Their Asian competitors, on the other hand, will still have to prove that quality and service will not be causes to reject a purchase of Chinese models.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1.3<\/strong>. High rate of acceptance among the 30-39-year-old premium customers<\/strong><\/h2>The struggle to get the attention of first-time car buyers is real. Premium German OEMs particularly know how crucial it is to convince the age group 30-39 or Gen Y to become their first-time customers. German OEMs will face a dramatic challenge as 42% (vs. 16% of general German customers) of this group are willing to acquire a Chinese product<\/a>. This group is very clear on the reasons to conduct such a purchase (only 10% stated \u201cI don\u2019t know\u201d), while 60% of the general customers at this age state the technical specifications of the Chinese brands. The European first-time buyer in most countries will be a decisive group to convince towards the new entrants or to keep with the existing brands. As such, in particular, marketers should consider focusing significantly more on addressing this respective group with a surgical approach.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2. Chinese OEMs: <\/strong><\/h2>2.1 Brand building and brand experience are the most important aspects of a roll-out<\/strong><\/h2>A willingness to purchase a Chinese car, not knowing the brands and what they stand for, is obviously an obstacle for premium Chinese brands. Though brands such as Polestar, NIO, and BYD have the highest brand recognition among the Chinese OEMs entering the EU market, it is still a limiting factor not to have experienced the brands on hand. The recognition counts for both premium customers and the average customer. In fact, once customers have any touchpoint with Chinese brands, the purchase consideration jumps from 21% to up to 85%<\/a>.<\/span>\u00a0Overall, this emphasizes the importance of brand and product awareness and the groundwork to be done by the Chinese. It also emphasizes the immense significance of deals such as the recent one between BYD and SIXT, providing a vast number of customers with the possibility of experiencing Chinese products firsthand.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2.2 Knowing Your Customer – who is your target group? <\/strong><\/h2>A critical challenge for Chinese OEMs will be gathering valid data to define their target group and clearly understanding the German\/European customer in detail. Valid market data can and will help Chinese OEMs to understand their value proposition from the point of view of potential German customers and reframe their messaging. Our data indicate a strong difference among age groups<\/a> (lowest: 18-29 with 11% and 65+ with 16%) and propose the marketing of the cars among potential premium customers around the attributes of affordability and EV technical features (range and charging times).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2.3 Politics are not as strongly influencing premium customers as expected<\/strong><\/h2>The omnipresent discussion of the notion that politics are an influential factor in the purchase decision of the German\/European customer seems to be a valid point. Whether it is political topics or purely the mistrust in Chinese technology, such as the Huawei\/ZTE case, the media perspective is always a polarized picture of opposing Chinese products. However, our study indicates that German customers are less influenced by these political arguments than expected. In fact, 50% of the customers (general and premium) state that it merely has an effect on their purchase decision. Thus, when confronted by political provocation, OEMs are recommended to emphasize the separation between the mere attempt to offer customer-oriented mobility solutions to political turmoil while keeping their ground on the fundamental values of the brand proposition.<\/p>
\u00a0<\/p>
So, after this short excursion, what are the detailed results?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\t\tAwareness <\/strong><\/h2>While most German customers cannot name any Chinese brands (more than 70% – see figure 1), this figure reduces strongly with premium customers (57% – see figure 2) and the ones experienced with CN OEMs to only 2% – see figure 3 (can name several brands). Polestar, Nio, and BYD are the best-known brands named by at least every fifth customer asked. Brands such as WEY (GWM) or Xpeng are barely known. From our point of view, this obviously has a lot to do with the heritage (Volvo-Polestar), strong marketing efforts, the presence of cars on the road, and also the stock market attention where many customers are hoping to invest in the next Tesla (Nio\/BYD).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t1. Brand Awareness among general German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t2. Brand Awareness among premium German customers<\/strong><\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t3. Brand Awareness among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tConsideration <\/strong><\/h2>What is much more outstanding is the general openness toward purchasing a Chinese model. Only 17% of the general German customers showed strong or somewhat openness towards purchase willingness, while this figure increases to every 5th (22%) premium customer asked. Once a customer gains experience with Chinese OEMs, it appears that the Chinese are unstoppable within the purchase decision basket of the German customer (74% of the customers asked). This indicates that the key purchase barrier might still be the strong lack of brand\/product awareness and brand\/product experience. While the Chinese are champions at playing the game of customer-centricity on their home ground, this provides the impression of a fantastic opportunity for opening up to German customers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t4. Brand consideration among general German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t5. Brand consideration among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t6. Brand consideration among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tThough asking premium customers about specific brands, the willingness decreases roughly 2\/3, with Polestar being in the forefront (12%), followed by Nio (6%) and BYD (7%). This changes decisively with customers experienced with Chinese products, Polestar (83%), Nio (34%), and BYD (71%). From our point of view, this shows that legacy and history do make a difference when it comes to customer trust. Polestar is perceived as a Volvo company (and, as such, with European DNA), BYD has been around for more than 20 years in European discussions, while Nio is the new kid on the block and still to convince customers. Besides legacy and history, Polestar specifically has been marketing the brand heavily since 2018. The Swedish\/Chinese brand has gained brand momentum throughout all media outlets with its high-street stores and social media presence. It seems that once German customers have taken comfort in a Chinese OEMs driver\u2019s seat, they are willing to stay.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t7. Openness towards Chinese OEMs among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t8. Openness towards Chinese OEMs among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tPurchase (reasons)<\/strong><\/h2>On the other hand, not-so-surprising key reasons for purchasing a Chinese car are mainly \u201cvalue-for-money\u201d (45% premium \/ 54% general) and key electric vehicle features such as range (19% premium \/ 41% general) and charging time (11% premium \/ 47% general). The most emotional purchase reason, \u201cdesign,\u201d is only stated by every 12th premium customer, while over a third of premium customers who have had experience with Chinese OEMs say that this would be a trigger. As such, more investment in sleek and distinctive European design is necessary for all new market entrants. In paradigm examples such as the Hyundai Ioniq 5, we can observe that such an adaption has a strong impact on direct acceptance by customers and sets the pace for a successful story of a model.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t9. Purchase (reasons) for Chinese OEMs among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t10. Purchase (reasons)for Chinese OEMs among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\tAsking the customer which Chinese attributes might be superior to German brands is not so astounding – the majority believe, analog to purchase reasons, in \u201cvalue-for-money\u201d (42% premium \/ 53% general) and \u201cbase equipment level\u201d (19% premium \/ 48% general). What is shockingly low, though, is eRange, charging time, and design – all main decision factors for the latest brands. Here, Chinese OEMs need to prove their designs being able to convince buyers of any premium price. As such, the current price strategies of the Chinese OEMs (e.g., BYD, WEY, NIO) are on shaky ground if customers cannot observe clear competitiveness for these attributes.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t11. Superior attributes of Chinese OEMs compared to German ones from the perspective of premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
Soleiman Mansouri<\/p>\n
Associate Partner<\/p>\n
soleiman.mansouri@berylls.com<\/p>\n <\/div>\n
Parwiz Torgull<\/p>\n
Head of Customer Success Civey<\/p>\n
<\/p>\n <\/div>\n
First, the results are astoundingly surprising! Heads-up, <\/strong>owners of premium cars (MB, BMW, Audi, JLR, Porsche) are more positive than general customers. <\/strong><\/p> \u00a0<\/p> Among the premium customers, roughly 25% consider Chinese brands when purchasing a car<\/a>. This is a significant threat to German\/EU OEMs, given the fact that most Chinese brands have not yet started their marketing\/communication activities. Surprisingly, the general German customer shows notably less willingness (16%) even though \u201cvalue-for-money\u201d is the key driver for respective purchase decisions (46% general vs. 57% premium). Overall, the EV market will be severely more clustered with the Chinese entrants. Here the existing market player will have to fight to sustain market shares, while the Chinese need to be aware that conversion to a purchase will require investment into the right channels.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t As the market becomes fragmented, customer perception and openness to the latest brands are also changing. Almost 50% of the premium customers believe that Chinese OEMs will be successful in Europe<\/a>, while the general customer is more conservative at only 35%.This high percentage illustrates a leap of faith by German customers toward Chinese OEMs that there is a certain level of trust or an expectation of technical leadership in developing EVs. In particular, the Western OEMs need to underline the strength of their upcoming EV portfolio and provide the WOW-effect of their product substance (clear product USPs). Their Asian competitors, on the other hand, will still have to prove that quality and service will not be causes to reject a purchase of Chinese models.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The struggle to get the attention of first-time car buyers is real. Premium German OEMs particularly know how crucial it is to convince the age group 30-39 or Gen Y to become their first-time customers. German OEMs will face a dramatic challenge as 42% (vs. 16% of general German customers) of this group are willing to acquire a Chinese product<\/a>. This group is very clear on the reasons to conduct such a purchase (only 10% stated \u201cI don\u2019t know\u201d), while 60% of the general customers at this age state the technical specifications of the Chinese brands. The European first-time buyer in most countries will be a decisive group to convince towards the new entrants or to keep with the existing brands. As such, in particular, marketers should consider focusing significantly more on addressing this respective group with a surgical approach.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t A willingness to purchase a Chinese car, not knowing the brands and what they stand for, is obviously an obstacle for premium Chinese brands. Though brands such as Polestar, NIO, and BYD have the highest brand recognition among the Chinese OEMs entering the EU market, it is still a limiting factor not to have experienced the brands on hand. The recognition counts for both premium customers and the average customer. In fact, once customers have any touchpoint with Chinese brands, the purchase consideration jumps from 21% to up to 85%<\/a>.<\/span>\u00a0Overall, this emphasizes the importance of brand and product awareness and the groundwork to be done by the Chinese. It also emphasizes the immense significance of deals such as the recent one between BYD and SIXT, providing a vast number of customers with the possibility of experiencing Chinese products firsthand.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t A critical challenge for Chinese OEMs will be gathering valid data to define their target group and clearly understanding the German\/European customer in detail. Valid market data can and will help Chinese OEMs to understand their value proposition from the point of view of potential German customers and reframe their messaging. Our data indicate a strong difference among age groups<\/a> (lowest: 18-29 with 11% and 65+ with 16%) and propose the marketing of the cars among potential premium customers around the attributes of affordability and EV technical features (range and charging times).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The omnipresent discussion of the notion that politics are an influential factor in the purchase decision of the German\/European customer seems to be a valid point. Whether it is political topics or purely the mistrust in Chinese technology, such as the Huawei\/ZTE case, the media perspective is always a polarized picture of opposing Chinese products. However, our study indicates that German customers are less influenced by these political arguments than expected. In fact, 50% of the customers (general and premium) state that it merely has an effect on their purchase decision. Thus, when confronted by political provocation, OEMs are recommended to emphasize the separation between the mere attempt to offer customer-oriented mobility solutions to political turmoil while keeping their ground on the fundamental values of the brand proposition.<\/p> \u00a0<\/p> So, after this short excursion, what are the detailed results?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t While most German customers cannot name any Chinese brands (more than 70% – see figure 1), this figure reduces strongly with premium customers (57% – see figure 2) and the ones experienced with CN OEMs to only 2% – see figure 3 (can name several brands). Polestar, Nio, and BYD are the best-known brands named by at least every fifth customer asked. Brands such as WEY (GWM) or Xpeng are barely known. From our point of view, this obviously has a lot to do with the heritage (Volvo-Polestar), strong marketing efforts, the presence of cars on the road, and also the stock market attention where many customers are hoping to invest in the next Tesla (Nio\/BYD).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t What is much more outstanding is the general openness toward purchasing a Chinese model. Only 17% of the general German customers showed strong or somewhat openness towards purchase willingness, while this figure increases to every 5th (22%) premium customer asked. Once a customer gains experience with Chinese OEMs, it appears that the Chinese are unstoppable within the purchase decision basket of the German customer (74% of the customers asked). This indicates that the key purchase barrier might still be the strong lack of brand\/product awareness and brand\/product experience. While the Chinese are champions at playing the game of customer-centricity on their home ground, this provides the impression of a fantastic opportunity for opening up to German customers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Though asking premium customers about specific brands, the willingness decreases roughly 2\/3, with Polestar being in the forefront (12%), followed by Nio (6%) and BYD (7%). This changes decisively with customers experienced with Chinese products, Polestar (83%), Nio (34%), and BYD (71%). From our point of view, this shows that legacy and history do make a difference when it comes to customer trust. Polestar is perceived as a Volvo company (and, as such, with European DNA), BYD has been around for more than 20 years in European discussions, while Nio is the new kid on the block and still to convince customers. Besides legacy and history, Polestar specifically has been marketing the brand heavily since 2018. The Swedish\/Chinese brand has gained brand momentum throughout all media outlets with its high-street stores and social media presence. It seems that once German customers have taken comfort in a Chinese OEMs driver\u2019s seat, they are willing to stay.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t On the other hand, not-so-surprising key reasons for purchasing a Chinese car are mainly \u201cvalue-for-money\u201d (45% premium \/ 54% general) and key electric vehicle features such as range (19% premium \/ 41% general) and charging time (11% premium \/ 47% general). The most emotional purchase reason, \u201cdesign,\u201d is only stated by every 12th premium customer, while over a third of premium customers who have had experience with Chinese OEMs say that this would be a trigger. As such, more investment in sleek and distinctive European design is necessary for all new market entrants. In paradigm examples such as the Hyundai Ioniq 5, we can observe that such an adaption has a strong impact on direct acceptance by customers and sets the pace for a successful story of a model.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Asking the customer which Chinese attributes might be superior to German brands is not so astounding – the majority believe, analog to purchase reasons, in \u201cvalue-for-money\u201d (42% premium \/ 53% general) and \u201cbase equipment level\u201d (19% premium \/ 48% general). What is shockingly low, though, is eRange, charging time, and design – all main decision factors for the latest brands. Here, Chinese OEMs need to prove their designs being able to convince buyers of any premium price. As such, the current price strategies of the Chinese OEMs (e.g., BYD, WEY, NIO) are on shaky ground if customers cannot observe clear competitiveness for these attributes.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t1. One Group German\/EU OEMs:<\/h2>
1.1 Chinese are arriving, and the German customers are willing to give them a chance<\/h2>
1.2.<\/strong> The German customer mindset is surprisingly heterogeneous and difficult to grasp – new generations are open to innovative solutions<\/strong><\/h2>
1.3<\/strong>. High rate of acceptance among the 30-39-year-old premium customers<\/strong><\/h2>
2. Chinese OEMs: <\/strong><\/h2>
2.1 Brand building and brand experience are the most important aspects of a roll-out<\/strong><\/h2>
2.2 Knowing Your Customer – who is your target group? <\/strong><\/h2>
2.3 Politics are not as strongly influencing premium customers as expected<\/strong><\/h2>
Awareness <\/strong><\/h2>
1. Brand Awareness among general German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t2. Brand Awareness among premium German customers<\/strong><\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t3. Brand Awareness among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\tConsideration <\/strong><\/h2>
4. Brand consideration among general German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t5. Brand consideration among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t6. Brand consideration among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t7. Openness towards Chinese OEMs among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t8. Openness towards Chinese OEMs among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\tPurchase (reasons)<\/strong><\/h2>
9. Purchase (reasons) for Chinese OEMs among premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t10. Purchase (reasons)for Chinese OEMs among premium German customers who have had experience with a Chinese OEM<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t11. Superior attributes of Chinese OEMs compared to German ones from the perspective of premium German customers<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t